The recent decision by the Ministry of Public Security to prosecute 17 individuals involved in violations related to durian exports has exposed critical weaknesses in the legal framework governing this billion-dollar industry. According to representatives from the Dak Lak Durian Association, the sector urgently needs restructuring to ensure sustainable development.

Legal Framework Weaknesses Exposed

The Department of Economic, Corruption, and Smuggling Crimes Investigation (C03) under the Ministry of Public Security has initiated criminal proceedings for “Bribery, Receiving Bribes, Bribery Brokerage, Violating Accounting Regulations Causing Serious Consequences, and Abusing Influence Over Persons with Authority for Personal Gain.” The case involves the Center for Testing Verification and Quality Services (Retaq), NhoNho Technology Co., Ltd., Thuy Fruit Co., Ltd., and several related entities.

Seventeen individuals, including several business executives, have been indicted. Among them are two members of the Dak Lak Durian Association — Mr. Vu Quang Phuc (Secretary General) and Ms. Doan Thi Xuan — both charged with “Bribery Brokerage.”

Speaking to Tien Phong Newspaper, Mr. Le Anh Trung, Chairman of the Dak Lak Durian Association, described the incident as a wake-up call for dishonest enterprises and stressed that it is time to restore order in this billion-dollar sector.

According to the General Department of Vietnam Customs, durian exports in the first nine months of 2025 earned nearly USD 2.77 billion. Export turnover for the full year is expected to reach a record USD 3.4–3.5 billion, surpassing the 2024 figure of USD 3.2 billion.Dak Lak remains the country’s largest durian-growing province, with nearly 45,000 hectares under cultivation, including more than 26,000 hectares already in harvest. The province’s total durian output for 2025 is estimated at 390,000 tons, an increase of 30,000 tons compared to 2024.

Mr. Trung emphasized that the recent scandal highlights significant gaps in the legal corridor governing the durian industry. At present, the only existing standard is Decision No. 3015 on the “Food Safety Control Process for Fresh Durian Exports” (issued August 4, 2025, by the Ministry of Agriculture and Environment). Vietnam still lacks a national industry standard specifically for durian.

In theory, durian exporters are exempt from export tax (0%) and only pay import duties in China. However, in practice, exporters cannot buy directly from farmers; they must go through intermediaries such as traders, cooperatives, or trading companies. Under current tax laws, these intermediaries are subject to personal and corporate income taxes. Yet, because their purchases serve export—not domestic—purposes, they should, in principle, be tax-exempt. Exporters, meanwhile, must purchase directly from farmers to qualify for the 0% export tax, which is rarely feasible.

According to Mr. Trung, a key requirement for durian exports is that the fruit must come from officially registered planting areas. However, only about 25% of Vietnam’s durian production currently has such registration, leaving roughly 75% unqualified. For example, while total export volume may reach one million tons, only 300,000 tons are backed by valid planting area documentation. This gap forces some businesses to manipulate records—using planting codes from certified zones and inflating volumes from 20 to 40 tons—to cover uncertified fruit. When investigators uncovered such practices, they prosecuted the parties involved.

“The problem lies in the mechanisms and policies themselves,” Mr. Trung explained. “Testing irregularities are only the consequence of missing planting codes, fragmented oversight, and poor quality control. Because laboratories lack sufficient capacity, enterprises are forced to seek tests elsewhere—creating loopholes for corruption.”

From Seasonal Risk Management to Chain Governance

The Dak Lak Durian Association warns that Vietnam’s durian industry is now facing major challenges in quality control and traceability, as China has classified durian as a high-risk product (“red channel”). Therefore, the industry must shift from “seasonal risk management” to “supply chain governance based on standards, data, and branding,” ensuring long-term competitiveness in China and other premium markets.

To achieve this, the Association has proposed that the Dak Lak People’s Committee approve the Green Channel Program 2025–2026 and appoint the Association as coordinating body. The plan includes establishing a five-party coordination mechanism (People’s Committee – Department of Agriculture and Environment – Plant Protection Sub-Department – Association – Enterprises/Cooperatives), and launching quarterly “Public Green Lists” and “Internal Warning Lists.”

The Association also proposes creating Quality Teams in all durian-growing communes (under Association–Commune collaboration) to oversee production processes, sampling, digital recordkeeping, and incident response.

Additionally, the Association recommends that the People’s Committee authorize it to register the “Dak Lak Durian” trademark for protection in Vietnam and target markets such as China, the EU, South Korea, and the UAE. It also urges the development of a Dak Lak Durian Industry Standard that integrates both Vietnamese and international benchmarks.

Regarding taxation, the Association argues that current policies not only increase costs but also create serious legal risks across the value chain. It therefore proposes that the Ministry of Finance and General Department of Taxation issue specific guidelines allowing all participants in durian export chains—linked to registered planting areas—to enjoy 0% tax. The Association also suggests increasing registered planting area coverage to 50% of total output by the end of 2026, standardizing production verification, and preventing fraudulent authorizations.

Mr. Trung added that Dak Lak is completing construction of its first testing center under the Ministry of Science and Technology. At present, most durian samples for Cadmium and Auramine O testing must be sent to laboratories in Da Nang, Can Tho, Ho Chi Minh City, Hanoi, or Hai Phong. Only two facilities—NhoNho and Retaq—are capable of performing all required analyses.

“The key solution is to build a complete production chain,” Mr. Trung concluded. “Local authorities must mobilize farmers to follow standardized procedures and supervise compliance at every stage. There is no alternative but to return to integrated, transparent supply chain production.”

Source: CafeF